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Chevron (CVX) to Pay $550M Settlement Over Richmond Refinery
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Chevron Corporation (CVX - Free Report) , the U.S. oil and gas major, has agreed to pay $550 million to the Richmond City Council in exchange for dropping a proposed tax on the company’s Richmond refinery. The proposed tax was scheduled on the November ballot. However, per the terms of the settlement, Chevron will pay $550 million to the council in a span of 10 years for dropping the proposed tax measure.
The city intended to seek the approval of its voters to impose a $1 per barrel tax on the crude processed in the Richmond refinery. The refinery processes 250,000 barrels of crude oil per day. Richmond stated that the oil giant should contribute its fair share toward the community it has been part of for more than a century.
The settlement, which was approved by the council, resulted in the withdrawal of the proposed tax measure. Chevron stated that it has reached an agreement with the City of Richmond that resolves the litigation. Furthermore, the Refining Business License Tax measure will be removed from the ballot. CVX will start paying the installments from Jul 1, 2025, and will continue until Jun 30, 2035.
Chevron had earlier stated that it plans to shift its corporate headquarters outside California, citing that the state's restrictive energy policies negatively impact its business and deter investments.
SM Energy is an upstream energy firm operating in the prolific Midland Basin and the South Texas regions. For 2024, the company expects its production to increase from the prior-year reported figure, signaling a bright production outlook.
The Williams Companies is a premier energy infrastructure provider in North America. The company’s core operations include finding, producing, gathering, processing, and transporting natural gas and natural gas liquids. Boasting a widespread pipeline system of more than 33,000 miles, Williams is one of the largest domestic transporters of natural gas by volume.
MPLX LP owns and operates a wide range of midstream assets. The partnership's midstream assets include oil and natural gas gathering systems and transportation pipelines for crude, natural gas and refined petroleum products. MPLX is least exposed to commodity price fluctuations as it generates stable fee-based revenues. Furthermore, it surpasses its industry peers in terms of distribution yield, reflecting its commitment toward returning capital to its unitholders.
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Chevron (CVX) to Pay $550M Settlement Over Richmond Refinery
Chevron Corporation (CVX - Free Report) , the U.S. oil and gas major, has agreed to pay $550 million to the Richmond City Council in exchange for dropping a proposed tax on the company’s Richmond refinery. The proposed tax was scheduled on the November ballot. However, per the terms of the settlement, Chevron will pay $550 million to the council in a span of 10 years for dropping the proposed tax measure.
The city intended to seek the approval of its voters to impose a $1 per barrel tax on the crude processed in the Richmond refinery. The refinery processes 250,000 barrels of crude oil per day. Richmond stated that the oil giant should contribute its fair share toward the community it has been part of for more than a century.
The settlement, which was approved by the council, resulted in the withdrawal of the proposed tax measure. Chevron stated that it has reached an agreement with the City of Richmond that resolves the litigation. Furthermore, the Refining Business License Tax measure will be removed from the ballot. CVX will start paying the installments from Jul 1, 2025, and will continue until Jun 30, 2035.
Chevron had earlier stated that it plans to shift its corporate headquarters outside California, citing that the state's restrictive energy policies negatively impact its business and deter investments.
Zacks Rank and Key Picks
Currently, CVX carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the energy sector are SM Energy (SM - Free Report) , The Williams Companies Inc. (WMB - Free Report) and MPLX LP (MPLX - Free Report) . SM Energy presently sports a Zacks Rank #1 (Strong Buy), while The Williams Companies and MPLX carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
SM Energy is an upstream energy firm operating in the prolific Midland Basin and the South Texas regions. For 2024, the company expects its production to increase from the prior-year reported figure, signaling a bright production outlook.
The Williams Companies is a premier energy infrastructure provider in North America. The company’s core operations include finding, producing, gathering, processing, and transporting natural gas and natural gas liquids. Boasting a widespread pipeline system of more than 33,000 miles, Williams is one of the largest domestic transporters of natural gas by volume.
MPLX LP owns and operates a wide range of midstream assets. The partnership's midstream assets include oil and natural gas gathering systems and transportation pipelines for crude, natural gas and refined petroleum products. MPLX is least exposed to commodity price fluctuations as it generates stable fee-based revenues. Furthermore, it surpasses its industry peers in terms of distribution yield, reflecting its commitment toward returning capital to its unitholders.